Next week Green Market Report is hosting its next virtual event on April 13 next week, The topic is cannabis Special Purpose Acquisition Companies. What was once seen as a promising path to IPO may already have peaked. Register and tune in to find out the latest on SPACs
Virginia is now the 17th state to legalize cannabis for adult use and the fourth state to do so by passing a bill through its state legislature versus going to the voters. On Wednesday, Virginia lawmakers approved a bill that will legalize, regulate, and tax cannabis sales for adults 21 and over. It will probably be another two years before the state sees any retail sales.
Consolidation continues within the industry this week with Canopy Growth (NASDAQ: CGC) buying The Supreme Cannabis Company (OTCQX: SPRWF) in a deal valued at approximately $435 million. Supreme Cannabis’s portfolio of brands includes 7ACRES, 7ACRES Craft Collective, Blissco, sugarleaf, and Hiway. The combination of market leader Canopy Growth with Supreme Cannabis’ top position in Canada will lead to a pro forma Canadian recreational market share of 13.6% according to a company statement based on Headset data.
Florida-based Trulieve Cannabis Corp. (OTCQX: TCNNF) is making a big move in Pennsylvania with the acquisition of Keystone Shops from Anna Holdings LLC in a deal valued at $60 million. Keystone has locations in Philadelphia, Devon, and King of Prussia. The deal consists of $40 million in Trulieve stock and $20 million in cash.
Organigram Holdings Inc. (NASDAQ: OGI) has acquired The Edibles & Infusions Corporation in a deal valued at $35 million consisting of $22.0 million, plus up to an additional $13.0 million in shares (payable upon the EIC business achieving certain earnout milestones.
Curaleaf Holdings, Inc. (OTCQX: CURLF) has successfully completed the previously announced acquisition of the European-based EMMAC Life Sciences Limited, a deal valued at approximately $50 million in cash and 17.5 million shares of Curaleaf.
In earnings this week:
Planet 13 Holdings Inc. (OTCQB:PLNHF) announced fourth quarter revenues were $20.1 million for the fourth quarter versus $16.5 million. For the full year, revenues were $70.5 million versus $63.6 million.The net loss for the year was $7.9 million as compared to a net loss of $6.7 million.
4Front Ventures Corp. (OTCQX: FFNTF) announced revenues of $46 million in 2020 vs. $14 million in 2019. The net loss fell considerably to $47 million from $182 million.